Extra-profit tax, the banks’ anger against the government: “Constitutionality doubts about the measure”

John

By John

Broadside of banks against the extraordinary tax on the compartmentor launched, surprisingly, a month ago by the Meloni government. Abi, Bcc and Assopopolari have expressed clear criticism, raising doubts about the constitutionality of the measure, underlined the risks of damage to the entire Italian economy in an already slowdown phase and warned of the consequences on the subscription of government bonds. Furthermore, they contested the very concept of ‘extra profits resulting from the difference between active and passive rates, which was also claimed today by the Prime Minister as a reason for the tax. The rule is «a vulnerability to the trust placed in the Italian financial market» he scanned the dg Abi Giovanni Sabatini and caused turbulence on the stock market, so much so that the very prospect of changes caused the stocks to rise on Monday. After a month of silence, also thanks to the August period, the banking sector has thus chosen an institutional venue, the hearings in the Senate on the asset bill, to put all the criticisms and doubts on paper. In recent days, diplomats had worked to try to ask for changes to a provision imposed from above without “preventive discussion” as Sabatini recalled, finding some support within the majority, in particular in Forza Italia. In fact, if the another measure, the one on NPLs (criticized with a unanimous chorus by the entire financial and banking sector), was postponed indefinitely by Prime Minister Meloni, regarding the tax the executive showed no openness or second thoughts after the choice of the instrument of the decree .

We will now see if one or more requests will be accepted in the amendments whose presentation deadlines are set for tomorrow. For the moment openings have only arrived on government bonds. In the hearing, the Abi thus underlined the doubts of constitutionality and non-adherence to EU rules, recalled the precedent of the Robin Tax and listed a series of minimal changes to avoid worse damage to the economy and state finances. We therefore ask for deductibility for IRES and IRAP purposes and to “exclude from the calculation of the extraordinary tax” on banks “the income effects (interest margin) and patrimonial effects (assets on which to calculate the maximum tax cap) of sovereign bonds”. And then there is the world of cooperative credit. The president of Federcasse dell’Erba asked for the “tout court exclusion” of the BCCs from the tax and recalled the role of the sector in favor of the local economy which would be severely compromised. Assopopolari then noted that smaller banks would bear a proportionately greater burden than large ones, seeing 24% of profits wiped out compared to 10% of large institutions. Everyone then agrees on one concept: “extra profits” do not exist. «Extra profit refers to a specific situation, one in which a company enjoying a monopoly or oligopoly position can set the price of its products, obtaining a higher profit than that which can be determined in a competitive market. This situation is absent in banks”, “in strong competition throughout the euro area”